Re: FINANCIAL MARKETS TODAY – 15 September 2021

The National Bureau of Statistics (NBS) confirmed in its monthly report, the nation’s fifth consecutive month of disinflation, with the Consumer Price Index (CPI), which measures inflation settling at 17.01% year-on-year in August 2021 vs 17.38% recorded in July 2021. The Food and Core sub indices both grew at slower rates in the month, settling at 20.30% and 13.41% year-on-year in August 2021 from 21.03% and 13.72% respectively, in July 2021. This is attributable to the persistent decrease in food prices.

We expect continued disinflation in the near term, due to the high base-effect of last year.

FINANCIAL MARKETS TODAY – 14 September 2021

Banking system liquidity opened with a deficit of ca ₦94.47 billion today, lower than previous day’s opening deficit of ca ₦15.07 billion, despite inflows from Open Market Operations (OMO) maturities of ca ₦38.00 billion. However, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 14.00% and 14.50% from 14.50% and 14.75% respectively, the previous day.